Business Management

States Taxing Online Purchases

Nail techs — and the public in general — who buy products online in North Carolina and Michigan may be in for a surprise. Tax authorities in both states are now asking residents to total up their out-of-state purchases—including items bought online. Both states have long required consumers to pay sales or use taxes on items purchased out of state. In fact, all 46 states that charge a sales tax or use tax expect citizens to pay taxes on items bought out of state. Most businesses comply with these taxes because they are routinely audited. However, most consumers never do, since enforcement has been difficult.

The Internet tax issue has divided many for some time. Some want to keep the Internet tax-free. Others, like the National Association of Governors, would like to see the entire sales tax structure simplified into a uniform system. In the meantime, states are not planning on any extra sales tax enforcement anytime soon.